Cryptocurrencies and equities faced a downward trend on Friday, reversing earlier gains as traders reacted to higher-than-expected inflation data. Bitcoin and Ether continued their decline from Thursday morning, with Bitcoin trading 6% lower below $70,000 and Ether losing about 7% in 24 hours, trading around $3,700 as per Coinbase data.
Noelle Acheson from the Crypto is Macro Now newsletter noted that the recent negative news on inflation has shaken Bitcoin’s upward momentum, pushing it below $69,000. The impact on sentiment has carried through to today’s market activity.
In addition to the crypto market, the S&P 500 and Nasdaq Composite indexes also experienced losses early in the trading session on Friday. Despite the decline in equities, analysts believe that the recent economic data has not significantly affected the overall bullish sentiment.
The producer price index (PPI) data released on Thursday showed a higher-than-expected increase in selling prices for domestic manufacturers in February. This data has led to a shift in market expectations regarding potential rate cuts, with a 91% chance that the Federal Reserve will maintain rates through May.
Looking ahead, the Fed will announce its rate decision and economic projections following the Federal Open Market Committee meeting next week. Stay tuned for updated insights and analysis in the evolving crypto and NFT market landscape.
